IDEAS home Printed from https://ideas.repec.org/a/vrs/foeste/v23y2023i1p64-86n7.html
   My bibliography  Save this article

Balance of Payments as a Monetary Phenomenon: An ARDL Bounds Test Method for Algeria

Author

Listed:
  • Ghilous Azeddine

    (1 Farhat Abbas University Setif1, Department of Economic Science, Marketing and Economic Studies and Research Laboratory (LERME), Setif, Algeria)

  • Ziat Adel

    (2 Farhat Abbas University Setif1, Department of Economic Science, Marketing and Economic Studies and Research Laboratory (LERME), Setif, Algeria)

Abstract

Every country attempts to improve its balance of payments (BOP) position to enhance macroeconomic policy. Algeria, like many developing countries, is experiencing a BOP deficit. This raises concerns about the reasons for this deficit and prioritizes the quest for potential answers.

Suggested Citation

  • Ghilous Azeddine & Ziat Adel, 2023. "Balance of Payments as a Monetary Phenomenon: An ARDL Bounds Test Method for Algeria," Folia Oeconomica Stetinensia, Sciendo, vol. 23(1), pages 64-86, June.
  • Handle: RePEc:vrs:foeste:v:23:y:2023:i:1:p:64-86:n:7
    DOI: 10.2478/foli-2023-0004
    as

    Download full text from publisher

    File URL: https://doi.org/10.2478/foli-2023-0004
    Download Restriction: no

    File URL: https://libkey.io/10.2478/foli-2023-0004?utm_source=ideas
    LibKey link: if access is restricted and if your library uses this service, LibKey will redirect you to where you can use your library subscription to access this item
    ---><---

    References listed on IDEAS

    as
    1. Dhliwayo, R., 1996. "The Balance of Payments as a Monetary Phenomenon: An Econometric Study of Zimbabwe's Experience," Papers 46, African Economic Research Consortium.
    2. Dickey, David A & Fuller, Wayne A, 1981. "Likelihood Ratio Statistics for Autoregressive Time Series with a Unit Root," Econometrica, Econometric Society, vol. 49(4), pages 1057-1072, June.
    3. B Ouattara, 2004. "Modelling the Long Run Determinants of Private Investment in Senegal," Economics Discussion Paper Series 0413, Economics, The University of Manchester.
    4. Johansen, Soren & Juselius, Katarina, 1990. "Maximum Likelihood Estimation and Inference on Cointegration--With Applications to the Demand for Money," Oxford Bulletin of Economics and Statistics, Department of Economics, University of Oxford, vol. 52(2), pages 169-210, May.
    5. Sidney S. Alexander, 1952. "Effects of a Devaluation on a Trade Balance," IMF Staff Papers, Palgrave Macmillan, vol. 2(2), pages 263-278, April.
    6. Johnson, Harry G, 1975. "The Monetary Approach to Balance-of-Payments Theory: A Diagrammatic Analysis," The Manchester School of Economic & Social Studies, University of Manchester, vol. 43(3), pages 220-274, September.
    7. M. Hashem Pesaran & Yongcheol Shin & Richard J. Smith, 2001. "Bounds testing approaches to the analysis of level relationships," Journal of Applied Econometrics, John Wiley & Sons, Ltd., vol. 16(3), pages 289-326.
    8. Elliott, Graham & Rothenberg, Thomas J & Stock, James H, 1996. "Efficient Tests for an Autoregressive Unit Root," Econometrica, Econometric Society, vol. 64(4), pages 813-836, July.
    9. Michael Howard & Nlandu Mamingi, 2002. "The Monetary Approach To The Balance Of Payments: An Application To Barbados," The Singapore Economic Review (SER), World Scientific Publishing Co. Pte. Ltd., vol. 47(02), pages 213-228.
    10. Odhiambo, Nicholas M., 2009. "Energy consumption and economic growth nexus in Tanzania: An ARDL bounds testing approach," Energy Policy, Elsevier, vol. 37(2), pages 617-622, February.
    11. Mah, Jai S., 2000. "An empirical examination of the disaggregated import demand of Korea--the case of information technology products," Journal of Asian Economics, Elsevier, vol. 11(2), pages 237-244.
    12. Faiz Bilquees, 1989. "Monetary Approach to Balance of Payments: The Evidence on Reserve Flow from Pakistan," The Pakistan Development Review, Pakistan Institute of Development Economics, vol. 28(3), pages 195-206.
    13. Hahn, Frank H., 1977. "The monetary approach to the balance of payments," Journal of International Economics, Elsevier, vol. 7(3), pages 231-249, August.
    14. Engle, Robert & Granger, Clive, 2015. "Co-integration and error correction: Representation, estimation, and testing," Applied Econometrics, Russian Presidential Academy of National Economy and Public Administration (RANEPA), vol. 39(3), pages 106-135.
    15. Serena Ng & Pierre Perron, 2001. "LAG Length Selection and the Construction of Unit Root Tests with Good Size and Power," Econometrica, Econometric Society, vol. 69(6), pages 1519-1554, November.
    16. A. P. Thirlwall & Heather D. Gibson, 1992. "Balance-of-Payments Theory and the United Kingdom Experience," Palgrave Macmillan Books, Palgrave Macmillan, edition 0, number 978-1-349-21806-6.
    17. Mukolu, M.O & Illugbemi, A.O & Otalu, J.A, 2017. "Monetary Policy and its Implication for Balance of Payment Stability in Nigeria Between 1986-2015," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 5(4), pages 480-492, December.
    18. Frenkel, Jacob A., 1971. "A theory of money trade and the balance of payments in a model of accumulation," Journal of International Economics, Elsevier, vol. 1(2), pages 159-187, May.
    19. Adenomon Monday Osagie & Ojo Rotimi Olalekan, 2020. "Autoregressive Distributed Lag Modeling of the Effects of Some Macroeconomic Variables on Economic Growth in Nigeria," Folia Oeconomica Stetinensia, Sciendo, vol. 20(2), pages 1-19, December.
    Full references (including those not matched with items on IDEAS)

    Most related items

    These are the items that most often cite the same works as this one and are cited by the same works as this one.
    1. Eléazar Zerbo, 2017. "Energy consumption and economic growth in Sub-Saharan African countries: Further evidence," Economics Bulletin, AccessEcon, vol. 37(3), pages 1720-1744.
    2. Shabanzadeh, Mehdi & Kenari, Reza Esfanjari & Jansouz, Parinaz & Kalashami, Mohammad Kavoosi, 2016. "Bank Credits and Investment Growth of Agricultural Sector in Iran," International Journal of Agricultural Management and Development (IJAMAD), Iranian Association of Agricultural Economics, vol. 6(1), March.
    3. Dakpogan, Arnaud & Smit, Eon, 2018. "The effect of electricity losses on GDP in Benin," MPRA Paper 89545, University Library of Munich, Germany.
    4. Ali, Amjad & Ur Rehman, Hafeez, 2015. "Macroeconomic Instability and Its Impact on Gross Domestic Product: An Empirical Analysis of Pakistan," MPRA Paper 71037, University Library of Munich, Germany.
    5. Tiwari, Aviral Kumar & Shahbaz, Muhammad, 2010. "Does financial development increase rural-urban income inequality? Cointegration analysis in the case of Indian economy," MPRA Paper 27093, University Library of Munich, Germany.
    6. Otero-Giráldez, María Soledad & Álvarez-Díaz, Marcos & González-Gómez, Manuel, 2012. "Estimating the long-run effects of socioeconomic and meteorological factors on the domestic tourism demand for Galicia (Spain)," Tourism Management, Elsevier, vol. 33(6), pages 1301-1308.
    7. Shahbaz, Muhammad, 2017. "Current Issues in Time-Series Analysis for the Energy-Growth Nexus; Asymmetries and Nonlinearities Case Study: Pakistan," MPRA Paper 82221, University Library of Munich, Germany, revised 19 Oct 2017.
    8. Shahbaz, Muhammad & Lean, Hooi Hooi & Shabbir, Muhammad Shahbaz, 2012. "Environmental Kuznets Curve hypothesis in Pakistan: Cointegration and Granger causality," Renewable and Sustainable Energy Reviews, Elsevier, vol. 16(5), pages 2947-2953.
    9. Ali, Amjad & Bibi, Chan, 2016. "Determinants of Social Progress and its Scenarios under the role of Macroeconomic Instability: Empirics from Pakistan," MPRA Paper 72920, University Library of Munich, Germany.
    10. Aviral Kumar Tiwari & Muhammad Shahbaz, 2013. "Modelling the Relationship between Whole Sale Price and Consumer Price Indices: Cointegration and Causality Analysis for India," Global Business Review, International Management Institute, vol. 14(3), pages 397-411, September.
    11. Kyriakos Emmanouilidis & Christos Karpetis, 2020. "The Defense–Growth Nexus: A Review of Time Series Methods and Empirical Results," Defence and Peace Economics, Taylor & Francis Journals, vol. 31(1), pages 86-104, January.
    12. Ahad, Muhammad & Khan, Wali, 2016. "Does Globalization Impede Environmental Quality in Bangladesh? The Role of Real Economic Activities and Energy Use," MPRA Paper 76278, University Library of Munich, Germany, revised Jul 2016.
    13. Abbas Ali Chandio & Yuansheng Jiang & Jam Ghulam Murtaza Sahito & Fayyaz Ahmad, 2019. "Empirical Insights into the Long-Run Linkage between Households Energy Consumption and Economic Growth: Macro-Level Empirical Evidence from Pakistan," Sustainability, MDPI, vol. 11(22), pages 1-17, November.
    14. Awad Atif & Yussof Ishak, 2017. "Factors Affecting Fertility – New Evidence from Malaysia," Bulletin of Geography. Socio-economic Series, Sciendo, vol. 36(36), pages 7-20, June.
    15. Phouphet Kyophilavong & Gazi Salah Uddin & Muhammad Shahbaz & Charles Harvie & Teerawat Charoenrat, 2019. "Money Demand in a Dollarized Economy: Evidence from Laos PDR," Asian Economic Papers, MIT Press, vol. 18(1), pages 99-115, Winter/Sp.
    16. Ali, Amjad, 2016. "Issue of Income Inequality under the perceptive of Macroeconomic Instability: An Empirical Analysis of Pakistan," MPRA Paper 74963, University Library of Munich, Germany.
    17. Muhammad Shahbaz & Talat Afza & Muhammad Shahbaz Shabbir, 2013. "Does Defence Spending Impede Economic Growth? Cointegration And Causality Analysis For Pakistan," Defence and Peace Economics, Taylor & Francis Journals, vol. 24(2), pages 105-120, April.
    18. Muhammad SHAHBAZ, 2009. "On Nominal and Real Devaluations Relation: An Econometric Evidence for Pakistan," International Journal of Applied Econometrics and Quantitative Studies, Euro-American Association of Economic Development, vol. 9(1).
    19. R. Santos Alimi, 2014. "ARDL Bounds Testing Approach to Cointegration: A Re-Examination of Augmented Fisher Hypothesis in an Open Economy," Asian Journal of Economic Modelling, Asian Economic and Social Society, vol. 2(2), pages 103-114, June.
    20. Isabel Cortés-Jiménez & Manuel Artís, 2005. "The role of the tourism sector in economic development - Lessons from the Spanish experience," ERSA conference papers ersa05p488, European Regional Science Association.

    More about this item

    Keywords

    Balance of Payments; Monetary Approach; Algeria; ARDL; Cointegration;
    All these keywords.

    JEL classification:

    • C32 - Mathematical and Quantitative Methods - - Multiple or Simultaneous Equation Models; Multiple Variables - - - Time-Series Models; Dynamic Quantile Regressions; Dynamic Treatment Effect Models; Diffusion Processes; State Space Models
    • E12 - Macroeconomics and Monetary Economics - - General Aggregative Models - - - Keynes; Keynesian; Post-Keynesian; Modern Monetary Theory
    • E50 - Macroeconomics and Monetary Economics - - Monetary Policy, Central Banking, and the Supply of Money and Credit - - - General

    Statistics

    Access and download statistics

    Corrections

    All material on this site has been provided by the respective publishers and authors. You can help correct errors and omissions. When requesting a correction, please mention this item's handle: RePEc:vrs:foeste:v:23:y:2023:i:1:p:64-86:n:7. See general information about how to correct material in RePEc.

    If you have authored this item and are not yet registered with RePEc, we encourage you to do it here. This allows to link your profile to this item. It also allows you to accept potential citations to this item that we are uncertain about.

    If CitEc recognized a bibliographic reference but did not link an item in RePEc to it, you can help with this form .

    If you know of missing items citing this one, you can help us creating those links by adding the relevant references in the same way as above, for each refering item. If you are a registered author of this item, you may also want to check the "citations" tab in your RePEc Author Service profile, as there may be some citations waiting for confirmation.

    For technical questions regarding this item, or to correct its authors, title, abstract, bibliographic or download information, contact: Peter Golla (email available below). General contact details of provider: https://www.sciendo.com .

    Please note that corrections may take a couple of weeks to filter through the various RePEc services.

    IDEAS is a RePEc service. RePEc uses bibliographic data supplied by the respective publishers.